Barnes & Noble: College Spinoff Next After Samsung Nook Deal?

For Barnes & Noble (BKS), no Nook is good Nook–at least when it comes to the hardware side of the business.

Reuters

Today, Barnes & Noble said it had reached a deal with Samsung Electronics (SSNLF) to release a co-branded Nook, which will be sold in Barnes & Noble stores. Maxim Group’s consider the implications:

The deal signals that Barnes & Noble is repositioning NOOK as a content centric, rather than device centric, business. The Samsung partnership adds significant credibility to NOOK. The price point for the Galaxy Tab 4 is $199.99 – reasonable to expect NOOK version should be very similar.

The rationalization of NOOK hardware business clears way for focus on potential spinout of College stores and NOOK divisions. A breakup of the business would likely be a major benefit to shareholders as investors could better understand the economics of the specific business in which they are investing.

Shares of Barnes & Noble have gained 3.3% to $19.53 at 3:06 p.m. today.